Plans for a £200 million pound state of the art train manufacturer on the doorstep of the Isle of Axholme and Scunthorpe has been given a ringing endorsement by one of the region’s MPs.

Brigg and Goole MP, Andrew Percy, has welcomed siting of the factory at Goole as “fantastic news” and he welcomed the investment from Siemens to build the business on a 67-acre site near the M62 creating 700 jobs.

Siemens aims to start phased development of the site later this year, if investment conditions are met, and subject to the company’s success in major future orders.

The new factory could not only employ up to 700 people in skilled engineering and manufacturing roles, but also an additional 250 people during the construction phase. Around 1,700 indirect jobs are expected to be created throughout the UK supply chain.

Andrew Percy said: “This fantastic commitment from Siemens chimes perfectly with the vision we have for Goole 36 as a new centre for skilled engineering jobs locally. I am delighted that Siemens have chosen the Goole site and I will be continuing to work with Siemens and the Government to bring this investment to fruition. This has the potential to be transformative for our area and for local young people. It also builds on Siemens’ other recent investment in East Yorkshire with their wind turbine facility in Hull.”

Chief executive at Siemens UK, Juergen Maier, said: “We’ve said for some time that future success for Siemens in the rail industry would see us opening a rail manufacturing plant here and this announcement provides additional substance to those words. Having considered multiple locations in the UK, I’m delighted to confirm that we’ve identified a site in Goole for our new UK rail factory, which not only has the potential scale we need for a facility of this size but also ready access to the skilled people we’d need to build and operate the factory.”

He added: “This investment has the potential to have a tremendous impact on the Yorkshire economy and the North of England as a whole, ensuring that the benefits of infrastructure spending are spread widely and helping to ensure the ongoing development of the UK rail industry.”

Chris Grayling, Transport Secretary, said it was an “exciting proposal by Siemens” and underlined the benefits of the government’s £13bn investment into improving and modernising Northern transport, providing firms with fast, reliable connections.